Product details

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Case
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Reference no. 319-0351-1
Published by: RSM Case Development Centre
Published in: 2019
Length: 13 pages
Data source: Published sources

Abstract

This case explores the situation of M-PESA within the Kenyan mobile money market, illustrating the rapid growth and maturation of mobile money within the domestic market and the impact of rapid international diffusion. M-PESA has enjoyed a decade long period of success within the Kenyan market. It has become by far the dominant local player in the mobile money industry, and occupies what some in the market term a virtual monopoly position. This success may have prompted some lethargy on the part of the company as it has basked in its obvious success. Because of its market dominance, there are increasing comments about a monopolistic position. A recent financial consultant's report even suggested spinning off M-PESA from the parent company Safaricom. The issue has received a great deal of press attention, both local and international. With arguments for and against divestiture, the subject was becoming increasingly sensitive.

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Time period

The events covered by this case took place in 2017.

Geographical setting

Region:
Africa
Country:
Kenya

Featured companies

M-PESA
Employees:
201-500
Turnover:
USD 253 million
Industry:
Mobile money industry
Safaricom
Employees:
5001-10000
Turnover:
KES 240,3 billion
Type:
Public company
Industry:
Telecommunications

Featured protagonist

  • Pauline Mwangi (female), Director of Operations

About

Abstract

This case explores the situation of M-PESA within the Kenyan mobile money market, illustrating the rapid growth and maturation of mobile money within the domestic market and the impact of rapid international diffusion. M-PESA has enjoyed a decade long period of success within the Kenyan market. It has become by far the dominant local player in the mobile money industry, and occupies what some in the market term a virtual monopoly position. This success may have prompted some lethargy on the part of the company as it has basked in its obvious success. Because of its market dominance, there are increasing comments about a monopolistic position. A recent financial consultant's report even suggested spinning off M-PESA from the parent company Safaricom. The issue has received a great deal of press attention, both local and international. With arguments for and against divestiture, the subject was becoming increasingly sensitive.

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Settings

Time period

The events covered by this case took place in 2017.

Geographical setting

Region:
Africa
Country:
Kenya

Featured companies

M-PESA
Employees:
201-500
Turnover:
USD 253 million
Industry:
Mobile money industry
Safaricom
Employees:
5001-10000
Turnover:
KES 240,3 billion
Type:
Public company
Industry:
Telecommunications

Featured protagonist

  • Pauline Mwangi (female), Director of Operations

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